Trading Equity Options
Use stock options to calibrate your portfolio.
Increase exposure, mitigate risk, and uncouple your trades from market direction. Options enable you to profit from falling as well as rising prices. Saxo offers clear, intuitive online options trading on our platforms. With competitive, volume-based pricing and no hidden costs. You can use stocks and bonds as collateral for your options trades, all from one account.
To help you get started or brush up on options strategies, you may access our training modules, webinars and in-house expertise at no cost – or you can benefit from our exclusive partnership with the OIC – the Options Industry Council.
Our trading platforms are fast, intuitive and simple. Investors are empowered by our unparalleled combination of advanced tech and powerful trading tools.
Our technology is secure, robust, and available. Access everything with a single Saxo ID and benefit from the highest standards of data protection in the industry.
Have questions? We have answers. Interact with our trading experts via telephone chat or email, 24/5. Wide range of educational resources available through Saxo Academy and options webinars. Frequent options trade view from our trading experts, #SaxoStrats
Trade some of the most liquid options on stocks and stock indices throughout the US, Europe and Asia-Pacific. And you have a wealth of in-house and third-party expertise and information.
Hedge your investments
Use Equity Options to lock in your equity gains, protect your portfolio in declining markets and play volatility around earnings. Or use them as building blocks to position yourself effectively in up, down and sideways markets.
Markets change. Follow suit with new strategies.
Below you can read about three of the many exciting Equity Options strategies you can execute to play the markets and maximise your profit potential.
This strategy would be used if you wanted to hedge your portfolio of stocks to protect it against a short-term downside of the market.
You can use this strategy to enhance your stock portfolio. Earn a premium writing Calls while enjoying the benefits of the underlying stock ownership.
By buying Straddles, you can take advantage of the unpredictability of the stock price gap movement following quarterly earnings reports.
Volume based pricing means you pay less as you trade more. But whatever your trading style, you can be certain that our prices are always transparent. At Saxo, you know what it will cost you before you trade.
Whether you are new to options trading or are simply looking for a way to sharpen your trading skills, at the Saxo Academy you can find videos, modules, courses and quizzes that are right for you.
Visit the Saxo Academy
Beyond that, our partnership with the OIC puts you at the source of the industry's greatest repository of practical and theoretical information.
The Options Industry Council
You can also learn more about Equity Options with the Options Industry Council. Visit their site to learn more here. The Options Industry Council offers additional educational material, events, webinars, and courses.
A practical example
Via a simple analogy we explain how options work - how the trade could play out and the implications.
What are Stock Options?
Stock Options are a by product - or derivative - of stocks. We introduce the basics, the risks and the benefits.
Making money on a buy
A simple illustration of how you'd make money when you'd purchased an option.
Where and how are they traded?
Stock Options are listed on exchanges around the world and are accessed via a broker. Their 'standardized' nature of Stock Options means consistency and clarity.
An option is categorised as a red product as it is considered an investment product with a high complexity and a high risk.
Saxo Capital Markets is required to categorise investment products offered to retail clients depending on the product’s complexity and risk as: green, yellow or red. Please refer to our "Product Risk Categorisation".
Trading in options may expose investors to potentially rapid and substantial losses. Please read Characteristics & Risks of Standardised Options prior to buying or selling an option to learn more about the characteristics and risks of exchange-traded options.
Other Risks: Spreads, straddles, and other multiple-leg option strategies can entail substantial transaction costs, including multiple commissions, which may impact any potential return. These are advanced option strategies and often involve greater and more complex risk than basic options trades.
Exercise and assignment of options, particularly American-style, may lead to substantial losses especially if a writer of the option is "uncovered." Options that expire in-the- money are subject to automatic exercise, while options that are out-of-the-money are expired. In some cases, holders of long OTM options may decide to exercise if very close to the daily settlement underlying price, e.g. "Pin Risk."